| Feb 02, 2011
There has been a lot of buzz the past few days about the where the online backup industry is headed and whether unlimited backup is a sustainable business model. Recent news has caused some media to speculate that it’s the beginning of the end for this model which Carbonite introduced almost five years ago.
For us, the answer is simple. We started this company based on the idea that if you keep it simple and affordable, everyone will backup online. So Carbonite will continue to provide consumers with unlimited backup for a flat fee because of the simplicity it provides.
Truth be told, we do lose money on customers with large amounts of data. Our purpose is not to provide the cheapest backup solution to users with unusually large needs, but rather to keep things simple for the vast majority of people. This simplicity is what has fueled our growth: we were the 9th fastest-growing private company in the U.S. last year (#9 on the 2010 Inc. 500, #1 in technology).
To keep the experience compelling and affordable for most people, we do take some measures to allocate bandwidth fairly among our users. These are similar to what Netflix does with its DVD business and are outlined in our bandwidth allocation policy. The vast majority of our customers are not affected by this policy in any way.
I also want to point out something that is sometimes overlooked when Carbonite’s online backup service is discussed in the press and blogs. Over the last year we've made our service even more useful to our customers day-to-day, not just when disaster strikes. Today Carbonite users have access to their backed up files "anytime, anywhere" from any internet-connected device thanks to our free web access and mobile applications which now support every major platform (iPhone, Android, Blackberry and soon the iPad.)
In addition to "anytime, anywhere access", we have several exciting product developments in the works for 2011 that will make the Carbonite experience more powerful, comprehensive and accessible for all types of users (home and business). And we remain committed to making backup simple and affordable. For our home and family users that means unlimited backup for a flat fee.